Under the Conceptual Framework, which of the following is not a characteristic of a liability?
A) It must be a legal debt.
B) It must result from a past transaction or event.
C) It must be a present obligation of the entity.
D) It is expected to result in an outflow of economic resources.

Question

Quizplus · Accepted Answer

A liability does not need to be a legal debt; it can also arise from constructive or equitable obligations. The other options (B, C, D) are characteristics of a liability according to the Conceptual Framework.

Under the Conceptual Framework, Which of the Following Is Not